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Phillips 66 (PSX) — This 2012 spin-off of ConocoPhillips is one of the largest independent refiners and marketers of petroleum products in the U.S.

S&P expects operating income in 2014 to reflect lower costs and operating efficiencies, with earnings per share (EPS) estimates of $6.54 in 2014 and $6.86 in 2015.

At the end of 2013, the company announced a $2 billion share repurchase program and raised its quarterly dividend to $0.39 cents per share, for a current yield of 1.9%. The consensus mean target is $87.35, but the high target is $95.

After a run from $60 in October to $79 in early January, PSX constructed an almost perfect cup-and-handle formation with a trading target of $91. Supporting the move higher is steady accumulation and a strong MACD buy signal. Long-term investors should consider holding this quality refiner.